Understanding Maryland’s First-Time Homebuyer Programs

Buying your first home in Maryland is a significant step, and the state offers several programs to make homeownership more accessible. From down payment assistance to tax credits, these resources can help you achieve your dream in vibrant markets like Baltimore, Annapolis, or Montgomery County. Here’s a detailed guide to Maryland’s first-time homebuyer benefits.

Maryland Mortgage Program (MMP)

The MMP, administered by the Maryland Department of Housing and Community Development, offers low-interest loans for first-time buyers. In 2024, eligible buyers earning up to $128,000 (or higher in targeted areas like Baltimore City) can access 30-year fixed-rate mortgages. The MMP’s 1st Time Advantage program provides up to $8,000 in down payment assistance as a zero-interest loan, repayable upon home sale. A realtor can help you navigate eligibility and connect with approved lenders.

Homestead Property Tax Credit

Maryland’s Homestead Property Tax Credit caps annual property tax increases for owner-occupied homes, protecting buyers from rising assessments. This is especially valuable in rapidly appreciating areas like Columbia, where median home prices reached $475,000 in 2024. Your realtor can ensure your application is filed correctly to maximize savings.

Local Incentives

Many Maryland counties offer additional support. Montgomery County’s Moderately Priced Dwelling Unit (MPDU) program provides affordable homes for buyers earning up to 65-70% of the area median income ($92,000-$100,000 in 2024). Anne Arundel County’s First-Time Homebuyer Assistance Program offers up to $20,000 for down payments in targeted neighborhoods. A local realtor will know which programs apply to your desired area and guide you through the application process.

Navigating the Market

Maryland’s 2024 market saw median home prices at $410,000 statewide, with hot spots like Bethesda exceeding $750,000. Pre-approval is essential to compete, especially in multiple-offer scenarios. A realtor can recommend trusted lenders and help craft offers that stand out, such as including escalation clauses or waiving minor contingencies in high-demand areas like Canton.

With Maryland’s first-time homebuyer programs and a knowledgeable realtor, you can confidently enter the market and find a home that fits your budget. Let’s explore your options today!